Form 4: Goldman Sachs Group Disposes of Sterling Check Corp. Shares Following Merger

Goldman Sachs Group Inc. reports the disposal of 49,807,744 shares of Sterling Check Corp. common stock following the merger with First Advantage Corporation.

Summary

• Goldman Sachs Group Inc. filed a Form 4 on November 4, 2024, reporting a change in beneficial ownership of Sterling Check Corp. shares.
• The filing indicates that 49,807,744 shares of Sterling Check Corp. common stock were disposed of on October 31, 2024.
• The disposal was a result of the merger agreement between Sterling Check Corp., First Advantage Corporation, and Starter Merger Sub, Inc.
• As a result of the merger, each share of Sterling Check Corp. was converted into the right to receive either $16.73 in cash or 0.979 shares of First Advantage Corporation common stock, subject to proration.
• Following the transaction, Goldman Sachs Group Inc., along with its subsidiaries, beneficially owns 0 shares of Sterling Check Corp. common stock.

Sentiment

Score: 6

Explanation: Neutral sentiment as the document primarily reports a transaction resulting from a previously announced merger. The disposal of shares is a procedural outcome rather than an indicator of the company's future performance.

Industry Context

The merger reflects consolidation trends within the background check and risk assessment industry, as companies seek to expand their service offerings and market reach.

Comparison to Industry Standards

• Mergers and acquisitions are common in the background check industry, with companies like First Advantage and Sterling Check Corp. seeking to gain market share and expand their capabilities.
• The valuation of $16.73 per share or 0.979 shares of First Advantage Corporation common stock is within the typical range for acquisitions in this sector, depending on growth prospects and synergies.
• Competitors such as HireRight and Checkr also actively pursue strategic partnerships and acquisitions to enhance their service offerings.

Stakeholder Impact

• Shareholders of Sterling Check Corp. received either cash or shares of First Advantage Corporation as a result of the merger.
• The merger may lead to changes in the company's operations and strategy, potentially affecting employees and customers.

Key Dates